Insights — Sales & Commercial Recruitment — 5 min read
How Much Should I Pay a B2B Salesperson in the UK?
Setting a sales salary isn't just about picking a number; it's about balancing basic pay with incentives that drive the right behaviours while remaining competitive in your specific sector.
In short
To determine what to pay a B2B salesperson in the UK, you must look beyond national averages. Competitive pay is determined by four factors: your sector, the geographic location of the hire, the seniority of the role, and the complexity of the sales cycle. Research current rates using live job adverts, recent salary surveys from specialist recruiters, and ONS ASHE data, then structure the package with a market-aligned base salary plus an OTE that reflects realistic performance targets.
One of the most frequent questions we hear from business owners is 'What is the market rate for a BDM right now?' The frustration usually stems from seeing a wide range of salaries for what appears to be the same job title, or worse, having high-quality candidates decline offers because the package 'isn't competitive'.
In B2B sales, pay is rarely a single figure. It is a combination of basic salary, On-Target Earnings (OTE), benefits, and the perceived difficulty of the target. To hire successfully, you need to understand how to research your specific market niche and build a package that attracts performers rather than just applicants.
The Components of a Sales Compensation Package
A standard UK B2B sales package is typically broken down into three main areas. How you balance these tells a candidate a lot about your company culture and the level of risk you expect them to take.
- Basic Salary: The guaranteed monthly pay. This covers the candidate's 'cost of living' and is what they use to secure mortgages or loans. If this is too low, you will struggle to attract experienced professionals who already have a proven track record.
- On-Target Earnings (OTE): This is the total amount a salesperson expects to earn if they hit 100% of their target. It is not a guarantee, but it must be achievable. A massive OTE with an unachievable target is often seen as a 'red flag' by experienced hires.
- Benefits & Allowances: This includes car allowances (or company cars), pensions, private healthcare, and flexible working. In sectors like construction or industrial equipment, a car or allowance is often considered a non-negotiable tool of the trade.
Understanding OTE Meaning and Structure
OTE (On-Target Earnings) is the sum of the basic salary plus the commission or bonus earned for hitting 100% of a defined quota. It is the 'headline' figure used in recruitment, but candidates will quickly look under the hood to see how it is weighted.
Common splits in the UK B2B sector range from 60/40 to 80/20. A 50/50 split is more common in high-growth SaaS or aggressive new business roles, while 90/10 or flat-salary-plus-bonus is more common in account management or highly technical consultative sales.
How to Research Current Market Rates
Salaries move faster than annual surveys. To find out what you should actually be paying today, use a combination of these sources:
- Live Job Adverts: Search LinkedIn, Indeed, and TotalJobs for roles with similar titles in your industry and region. Look for 'Salary' filters to see where the bulk of adverts sit.
- Recruiter Guidance: Speak to a specialist recruiter (like Evans) who is talking to candidates every day. They can tell you what candidates are actually asking for, which is often higher than what is listed in older surveys.
- Salary Surveys: Many large recruitment firms publish annual sector-specific guides. These are useful for trends but can sometimes lag behind the real-time market by 6-12 months.
- ONS ASHE Data: The Office for National Statistics (Annual Survey of Hours and Earnings) provides official data on UK earnings by occupation, though it is less granular for specific B2B sales niches.
Factors That Influence the Salary
| Factor | Impact on Salary |
|---|---|
| Geography | London and the South East typically command higher basics due to cost of living, though remote roles are narrowing this gap. |
| Sector Complexity | Selling complex engineering solutions or enterprise software requires more expertise and usually commands a higher base than selling simple products. |
| Sales Cycle Length | If a sale takes 12 months to close, the salesperson needs a higher basic salary to survive the gap between commission payments. |
| New Business vs Account Management | Pure 'Hunter' roles (BDMs) often have higher OTE potential but may have slightly lower basics than 'Farmer' roles (Account Managers) in the same sector. |
Why Candidates Aren't Accepting Your Salary
If you are struggling to recruit, it isn't always because the 'number' is too low. Salespeople are risk-averse when it comes to their own income. Common reasons for rejection include:
- The 'Step Back' Problem: A candidate earning £50k basic won't move for £45k, even if the OTE is higher, because the risk to their baseline is too great.
- Lack of Evidence: If you can't show that current team members are actually hitting their OTE, the candidate will treat the commission as 'monopoly money'.
- Weak Benefits: If your competitors offer a £6k car allowance and private health, but you offer 'standard pension and 20 days holiday', you are effectively paying less.
- Uncapped Potential: Performers hate 'capped' commission. If they can't earn more by doing more, they will go elsewhere.
Beyond the Paycheck: Benefits That Attract
While salary gets them to the interview, benefits often close the deal. In the current UK market, 'Standard' benefits are no longer a differentiator. Consider:
- Car Allowance vs Company Car: Many salespeople prefer the allowance (£5,000–£7,000 is common for mid-level roles) to choose their own vehicle, though EVs are making company car schemes popular again due to BIK tax benefits.
- Flexible/Hybrid Working: For field-based sales, this is assumed. For office-based roles, 1-2 days at home is now a standard expectation for many.
- Private Medical Insurance (PMI): Increasingly seen as a core benefit for professional-level hires.
- Professional Development: Paying for ISMM or similar sales certifications shows you are invested in their career, not just their pipeline.
Recruiting a permanent sales or commercial hire?
Evans starts with the commercial requirement — what has to be sold, to whom, through which channel and against what target — and writes the role specification from that.
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